Monday, March 4, 2013

What must India do in the face of economic decline of Europe? – article by Prof R Vaidyanathan.

 

"Sri Aurobindo said that India will rise on the ashes of western civilization and it seems to be coming true. It is important to recognize that the dominance of the West has been there only for last 200 odd years. According to Angus Maddison's pioneering OECD study, India and China had nearly 50 per cent of global GDP as late as the 1820s. Hence India and China are not emerging or rising powers. They are retrieving their original position. In 1990, the share of the G-7 in world GDP (on a purchasing power parity basis) was 51 per cent and that of emerging markets, 36 per cent. But in 2012, it is the reverse. So the dominant west is a myth."


"The root cause of the issue is the attempt in Europe to nationalise families and privatise business. Old age issue/ health issues/ child care issues are all normal family activities that have been taken over by the state and the state is broke. Funded security schemes are facing crisis since not enough numbers are getting in to labour force due to low reproductive rates and unfundedsecurity system is in difficulty since taxes are not adequate due to low population growth."


In this scenario, does India has an advantage and the wherewithal to overtake Europe and become a world leader?


Read Prof R Vaidyanathan's insightful analysis at

http://prof-vaidyanathan.com/2013/03/04/as-europe-goes-down-we-need-to-be-prepared-for-consequences/

 

 

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